After nine months, the banking system recorded a cumulated loss of 860 million lei (almost EUR200 million). But there are a few banks who made big profits, while others posted such high losses they offset the results of the profitable ones.
BRD-Groupe Societe Generale (BRD.RO) is by far the most profitable bank, with a net result of RON382 million in the first nine months, while Banca Comerciala Romana (BCR), the largest Romanian bank, recorded an unexpected loss of RON377 million during the same period according to Romanian accounting standards.
The quality of the loan portfolio is starting to make the difference, both for individual clients and for companies.
BRD invested significantly in its network in 2005-2007 and this has paid. In terms of assets, BCR saw a “forced” growth, taking business from other banks, but this also entails taking on the risk. On the other hand, BRD’s balance sheet was down RON1.5 billion against the end of 2010, while BCR added RON1.2 billion in assets, boosting its market share to over 20%.
Banca Transilvania (TLV.RO) seems to be a winner of the crisis despite not having a strong financial group behind. Its assets managed to bring it a net profit of RON106 million in January to September. The Romanian-controlled lender became no. 3 on the market, with a 6.8% market share, leaving Raiffeisen behind.
Still, Raiffeisen Bank increased its assets to over RON23 billion and implicitly its market share to 6.7%, up by more than half a percentage point against the end of 2009. Raiffeisen reported earnings of RON185 million.
State-controlled CEC Bank slipped against 2010, but in the third quarter accelerated its asset growth, climbing to 5th from the 7th position at year-half. CEC had a 6.2% market share at the end of September, from 5.6% in June.
However, the market share of the state-controlled bank is on a decline against the last two years, with CEC failing to a large degree in its plan to make up for the reticence of foreign-held banks to support lending. CEC posted a profit of just RON14.9 million in the first nine months.
As was to be expected, Greece’s Alpha Bank and Bancpost continued to slide in the asset ranking, and posted losses.
Alpha Bank reported a loss of RON119 million, while Bancpost reported a RON75 million loss. Alpha Bank fell to 8, from 6 at the end of 2010. Its future merger partner, Bancpost, ended up at the bottom of the top 10 ranking, being left behind by Dutch ING Bank. Bancpost lost almost one percentage point of its market share against 2009.
On the other hand, ING accelerated spectacularly to no. 9, with a 4.5% market share and a profit of RON76 million. The result comes as the bank completed its positioning as a universal bank, with over one million individual clients. ING is therefore among the few banks which increased their market share in times of crisis, being active in the loan refinancing campaign in the past year.
Bancpost (with 3.6% of the overall assets in the Romanian banking system) is not in danger of falling out of the top 10 because Piraeus, no. 11, has a 2.4% market share. According to September data, the bank that will result from the merger of Alpha Bank with Bancpost would have an 8.6% market share, which would secure it the third place on the market in the absence of other mergers.
In the middle part of the ranking by assets appears as a surprise the resistance of British-held RBS Bank at no. 13, with a 1.8% market share. With a select portfolio of clients, RBS made a profit of RON67 million. Although it has been up for sale for the last three years, the bank, known for the quality of its corporate services, remained on its feet and, despite losing some of its clients, it has also retained its profitability.
It is also its portfolio of multinational clients that keeps Citi at no. 15, with a stable market share of 1.4% and with a profit envied by larger banks – RON86 million. Eximbank, the second bank that is still in the state’s hands, is stuck at no. 20, and did not manage to accelerate lending enough to exceed a market share of 1%. But it posted RON45 million in profit.
Volksbank, which until the crisis came had the most spectacular rise, posted losses of RON542 million. It still ranks among the top ten banks, on the 7th position, with a market sahare of 5.5%.
Banca Romanesca, no. 12 by assets, held by the largest Greek bank – NBG – posted quite significant losses nine months into the year – RON223 million. Italo-Romena bank, ranking 18th in terms of assets, made a surprise profit of RON55 million.
(English version by Daniela Stoican)